Ethereum Down 9% Despite ETFs: What Is Going On?

Ethereum’s (CRYPTO: ETH) poor price performance two days into ETF trading sparked debate among traders about whether the price slide is only temporary.

What Happened: Crypto analyst Michaël van de Poppe questioned the lack of immediate market movement despite record-breaking ETF inflows of $1 billion. He likens the surprising lack of price action to that of the Bitcoin (CRYPTO: BTC) ETFs, predicting a significant effect on the Ethereum ecosystem.

He also pointed out the substantial volume of the Ethereum ETF on its first day, reaching $1.1 billion compared to the Bitcoin ETF’s first-day volume of $4.6 billion.

Van de Poppe is holding on to his altcoin positions especially the ones on the Ethereum ecosystem, which could rally after a long 2.5-year bear market.

Also Read: Will Ethereum ETFs Help ‘Break This Consolidation And Head Towards An All-Time High’?

Why It Matters: Van de Poppe pointed out that the Ethereum ETF could have a larger impact on Ethereum's price action due to a low amount of issuance. The net inflow of Ethereum on day one was $110 million, compared to Bitcoin’s $655 million.

IntoTheBlock data shows a 24% increase in large transaction volume and daily active addresses rising by 2.3% in the past 24 hours. Exchanges’ netflows decreased by 78.7% and around 72% of Ethereum holders are in profit.

What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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